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On Friday, BTIG analyst Janine Stichter adjusted the price target for Steven Madden (NASDAQ: NASDAQ:SHOO) shares to $46.00, down from the previous target of $52.00, while reiterating a Buy rating on the stock. The company’s shares, currently trading at $37.60, have declined 8.4% in the past week and are trading near their 52-week low of $36.88. According to InvestingPro data, technical indicators suggest the stock is in oversold territory. The revision reflects new challenges the company faces, including the impact of recent tariffs on goods from China and Mexico. Stichter’s comments came after meetings with SHOO’s management team during FFANY Market Week, which included CEO Ed Rosenfeld, CFO Zine Mazouzi, and VP of Corporate Development and Investor Relations Danielle McCoy, as well as an evaluation of the company’s product offerings with EVP of Brand Development Lauren Wilner.
The analyst cited several factors for the revised price target, noting that while Steven Madden is positioned to navigate the higher tariffs over time, there are immediate obstacles that are harder to mitigate, particularly in the first half of 2025. Despite these challenges, the company maintains a strong financial position with a healthy current ratio of 2.09 and operates with a moderate level of debt. InvestingPro analysis shows the company has achieved impressive revenue growth of 14.89% over the last twelve months. The company is also facing additional top-line pressures as department store purchases remain conservative, off-price wholesale buys are moderated, and handbag wholesale growth slows due to higher channel inventories.
Despite these challenges, the BTIG analyst remains optimistic about Steven Madden’s prospects. The product preview during the market week indicated potential fashion tailwinds, especially regarding the emerging popularity of skinny jeans paired with tall boots. Furthermore, there is an opportunity for the company to partially offset the impact of tariffs by increasing average unit retail prices (AURs) in exchange for providing elevated product quality.
The report by BTIG underscores the current retail environment, where companies like Steven Madden are adapting to trade policy changes and evolving consumer trends. The updated price target of $46 reflects the firm’s belief in the company’s long-term strategy and ability to adjust to the present economic headwinds while capitalizing on fashion trends to sustain growth. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers over 1,400 US stocks and provides detailed financial health metrics and expert analysis.
In other recent news, financial analysts have been closely examining the potential impact of tariffs on Steven Madden. Needham maintains a Hold rating on the company, anticipating a significant gross margin challenge in 2025 due to tariffs, potentially exceeding a 200 basis point reduction. Similarly, Citi maintains a Neutral rating on Steven Madden stock with a $38 target, predicting significant gross margin weakness in fiscal year 2025 due to the company’s exposure to China tariffs.
Piper Sandler has reduced its price target for Steven Madden to $40, expressing concern over the company’s significant sourcing from China, which necessitates revised estimates due to tariff impacts. Jefferies analysts highlight uncertainties around tariffs in China and other countries, suggesting a significant effect on the company’s performance.
However, BTIG reaffirms its Buy rating and a price target of $53 on Steven Madden, expressing confidence in the company’s strategic positioning and potential for growth despite industry challenges. These recent developments underline the crucial role of tariffs in shaping Steven Madden’s financial future.
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